Who said all loans are bad?
Some of them are good and can give you many benefits.
Are you wondering which loans can those be?
Then keep scrolling below as we have a list of 3 loans that will help you get the best tax benefits.
Overall, a loan is a debt that we take from Banks to sort out various issues like,
Best Home loan in India – To buy a house
Car loan at lowest interest rates – To buy a car
Instant Personal loan in India – To sort out personal problems/necessities
Best Business loan in India – To improve your business
These loans help you out in some way or the other. For the loan amount that you take, you must repay it via fixed monthly installments. Doing so will help you in maintaining a good credit score.
While we are still struggling to come out of this pandemic, repaying loans has become a difficult process. Hence we decided to give you information regarding these 3 loans that can easily help you through tax benefits.
- Instant Personal loans in India:
Almost every salaried or self-employed individual might have taken a personal loan during their working years. The benefit of a personal loan is that you can opt for it to sort out many other necessities and problems.
How to save tax – If you have opted for a personal loan to renovate your house or to pay the down payment on a home loan you can claim deductions up to 2 lakh rupees. This amount will be the interest paid on your loan.
- Best Education loans at lowest interest rates:
One of the most sought out loans in India today is education loans. This is because the cost of education is very high. If you wish for yourself or your child to go abroad for studies, you will surely need an education loan to cover every major expense.
How to save tax – If you have taken an education loan, then as per Section 80E of the Income-Tax Act, you can claim deductions on the interest amount paid against the education loan. There is no maximum limit on the interest amount and hence you can utilize this during filing returns.
- Best Home loans in India:
Home loans are perhaps the longest tenure type of loan that is given in India. Due to the higher amount, Banks allow tenures that go up to 25-30 years. Even though the tenure is longer than the remaining loans, the benefits are higher than the rest.
How to save tax – There are 3 types of benefits that can be utilized on Home loans.
- Amount paid toward principal repayment of your home loan can be claimed under Section 80C up to 1,50,000 per year.
- The interest amount that you repay on your home loan can be claimed under Section 80C up to 2,00,000 per year.
- In case the loan is jointly taken, you and your spouse both can claim deductions up to 2,00,000 each.
Here are some of the best tax benefits one can get after taking a loan. We hope this information has helped you understand the benefits and you can utilize them to file IT returns effectively.